Input credit
This query is : Resolved
28 February 2018
Whether we can take credit of tax charged on contractor bill for renovation of Rented office?
28 February 2018
ITC is not available on construction of buildings including renovation.
28 February 2018
Explanation to 17 (5) (d) is reproduced as :
"For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property"
In my opinion if the renovation to the rented building is not capitalised as an asset in the building the same shall be eligible for input tax credit. Whether the expense is required to be capitalised or not would depend on the circumstances.
"For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property"
In my opinion if the renovation to the rented building is not capitalised as an asset in the building the same shall be eligible for input tax credit. Whether the expense is required to be capitalised or not would depend on the circumstances.
28 February 2018
Yes...
I agreed to Mr Joswin Punchakunnel..
If it's rented building then You can avail the ITC benefits of "Repairs and Maintenance".
28 February 2018
Yes, it is available for repairs and maintenance as long as the expenses are not capitalized.
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